GST

GST ON PROPERTY TRANSACTIONS

What is the proposed measure?
The Government will require the purchasers of newly constructed residential properties or new subdivisions to remit the GST directly to the ATO as part of settlement.

Who will it affect?

Property purchasers and developers of new residential properties and new subdivisions, conveyancers and solicitors.

When will it apply?
From 2018-19

Comment:

This measure is intended to avoid property developers failing to remit GST to the ATO.

Under current law, where GST is included in the purchase price and the developer remits the GST to the ATO, some developers are failing to remit the GST despite having claimed input tax credits on their construction costs.

The Government expects that purchasers should experience minimal impact from these changes as most purchasers use conveyancing services.

DIGITAL CURRENCY

What is the proposed measure?

The GST treatment of digital currency (such as Bitcoin) will be aligned with money.

Purchases of digital currency will no longer be subject to the GST.

Who will it affect?

Digital currency purchasers and sellers.

When will it apply?
From 2017-18

Comment:

Digital currency is currently treated as intangible property for GST purposes. Consequently, consumers who pay with digital currencies can effectively bear GST twice — once on the purchase of the digital currency and again on its use in exchange for other goods and services subject to GST.

Removing double taxation on digital currencies will remove an obstacle for the Financial Technology (Fintech) sector to grow in Australia.

Under this change, GST will only apply when the digital currency is used in exchange for other goods and services subject to GST.

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